What is the term for a legal agreement between a parent company and a franchisee?

The term for a legal agreement between a parent company and a franchisee is "franchise." This designation specifically refers to the relationship established under franchising agreements, where the franchisor (the parent company) grants the franchisee (the individual or company buying the franchise) the rights to operate a business under the franchisor's brand and system.

Franchising is characterized by its unique structure that includes the provision of brand recognition, training, and ongoing support from the franchisor, which is integral to the franchisee's operations. This relationship is governed by a franchise agreement, which outlines details such as fees, obligations, and the use of intellectual property, reinforcing the concept that franchising is more than just a simple business contract or license—it's a comprehensive business model that emphasizes cooperation and shared goals between the two parties.

Understanding this relationship is crucial in distinguishing franchising from other types of agreements like contracts, partnerships, or licenses, which do not embody the same level of brand affiliation and operational framework inherent in a franchise agreement.